New office launched to aid businesses with bank loans
The Credit Review Office will act as a mediator between businesses and banks
A Credit Review Office, set to provide mediation and improved communication between banks and businesses in matters relating to bank loans, was established on Monday.
The new office will assist businesses and self-employed individuals seeking banking services related to opening a loan, with the office there to help guide them to prepare the correct documents needed and how long the loan application process is expected to take.
The office will also serve as a mediator between both parties in cases where a loan application is declined.
Details of the new office were announced by Economy Minister Silvio Schembri, who explained the Credit Review Office will facilitate better communication and mediation between commercial banks and businesses.
The credit review office was first mentioned on Sunday, during a political activity held by Prime Minister Robert Abela.
The new office also leads to the introduction of a Banking Charter, ensuring that banks operate under clear and transparent rules, where individuals will know in advance which documents they need to submit and within what timeframe they should receive a response.
“Our economic success is built on a climate of stability, trust, and transparency," Schembri said.
He highlighted the extensive collaboration carried out over the past year with various entities, including legal experts, the Arbiter for Financial Services, the MFSA, and the Malta Bankers’ Association.
Schembri said the government began with feedback from businesses, especially SMEs, who spoke out about the lengthy and bureaucratic process of obtaining a bank loan. Schembri said businesses recalled how they would wait for months for a reply from the bank, only to be informed their application was rejected, without any explanation.
I would like to thank all the banks and the Association who, from the very first time we discussed this concept with them, welcomed us with open doors and worked hand in hand with us to make this office a reality,” he said.
Schembri said the establishment of the Credit Review Office is an initiative which aligns with the long-term vision outlined in Malta Vision 2050.
Minister Schembri spoke about another important initiative in progress to be implemented, the Central Data Repository, a type of business wallet that will help reduce bureaucracy for the benefit of both businesses and banks, by storing all a company’s information in one place.
“At a European level, in my meetings with fellow ministers, this concept is only now starting to be discussed, while here in Malta, it will already be implemented next year,” the minister said.